Spring 2004

Doc Holliday’s Silver Bullets – Newsletter

Corporate Office: 10 Inverness Dr. E # 110, Englewood, CO 80112-5611 303-649-1922 / 800-888-9084

Western Regional Office: PO Box 176 Glenwood Springs, CO 81602 / 970-384-1900 / 800-613-4021

The Estate Planning

Puzzle

“This year I am going to get my estate planning done so I don’t have to worry about it.” I know this sounds familiar. But what do you really have to do to get it done?

Everyone believes they need a will. While that is generally true, perhaps you need a trust instead – or both. If you have minor children you at least need to designate who you would like appointed to take care of them in the event both parents die before the children reach majority (age 18). And yes, if you are divorced this means the other natural parent will have the children even though you have “custody” now. You need to plan for what your wishes are for your children if both parents are gone.

Do you own real estate? If you do, it is likely you own it as joint tenants, if married, and this means your spouse will get the real estate by virtue of survivorship laws. Remember to clearly designate someone else if this is not your wish… which can be the case in second marriages where you may want the children (not the spouse) to receive certain properties.

Who will get the stock you inherited from Uncle Harold? Perhaps you don’t want your spouse and their new partner, after you have died to get it. After all, it is family stock. So a will or a trust is on our list. A trust will likely avoid probate—but probate does have a purpose and it is not necessarily the “evil pit from which there is no return” as it is often portrayed to be.

What about disability or incapacitation…. has someone been named as your “general power of attorney” to carry on for you in the event you can no longer make decisions for yourself? Does the “power of attorney” include the power to cash Social Security checks etc.? Some attorneys believe the “power of attorney” is one of the most important aspects of estate planning. Of course, the power of attorney is only valid while you are alive, but it is part of the estate planning process. Is it a durable power of attorney? This means, if you are alive but disabled – unable to handle your financial affairs - the power kicks in and allows the designated person to take over immediately.

What about a “medical power of attorney?” This designates and allows someone else to make medical decisions on your behalf. Is the one you have durable? (same meaning as above).

Do you have a preference for burial? Where will you be buried? Are you going in the ground with your boots on and all of parts or are you going to donate your organs for use by others? After donation are you going to be cremated? Have you made anyone aware of how you feel about these issues?

In Colorado, you can declare donor intentions on your driver’s license. Write down your wishes and provide copies of them to your spouse and children, or close relative or friend. You should also have a “living will” which expresses how long you request to be kept alive by artificial means.

So now are these all the pieces to the Estate Planning Puzzle? Well, almost – but there is still one missing piece – often overlooked, often dropped on the floor and never picked up until it is too late…. And yes, it’s a big piece. A big hole right in the middle of the beautiful picture you have legally created.

You, and lots of others, initially forget to plan for the event of needing long term care. Now how bad is that really? Very bad…. because the estate you just planned to pass on will probably be gone quickly due to the high cost of long term care.

Current dollars:

· You could spend $30,000 per year for basic home health care;

· $40,000 per year for a modest assisted living facility; and

· A whopping - $50,000 per year for just one year of nursing home care.

(the average stay in a nursing home is 3 years, not just one).

This year finish the puzzle and get all the missing pieces in place… Get your estate and your life in good order so your spouse, family or friends won’t have to suffer because of your incomplete plan.

See your attorney and see your long term care insurance specialist…. 1 out of 2 people will require long term care and nothing destroys your retirement savings faster than the cost of extended care. The odds increase for couples to 70% that one person in a committed relationship will need care. Will you be the person who is ill – eating up the life savings – or the person who is healthy and broke. There are no easy answers… Plan ahead.. put all the pieces together and you’ll sleep better tonight. It’s called “peace of mind” and you deserve it.

Today’s “Silver Bullet” is to contact us now, before your next birthday. Long term care insurance is an age-rated product designed to cover healthy individuals (some controlled health conditions are accepted). The longer you wait the more the coverage costs and the more likely you may become medically ineligible. If you think you can’t afford coverage now… try paying for extended care out-of-pocket and you’ll see how inexpensive coverage really is. As a footnote - Doc Holliday expected to die in a gunfight, instead it was a lingering illness that finally took him.

Remember, your Employer-Sponsored Long Term Care Insurance Plan. It provides discounted premiums for you and your entire extended family… Call today for a free consultation, quote or to just receive a complimentary “Helpful Communications – Family Planning Checklist” to help you and your family communicate clearly to one another your true wishes.

To learn more or to request a quote visit: www.lidke.com e-mail: insurance@lidke.com

Metro-Denver Call: 800-888-9084 or 303-649-1922 Fax to: 303-649-1925

Western Slope: 800-613-4021 or 970-384-1900 Fax to: 970-384-1901

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